DXYBearish short day. Midpoint below EMA(10). Held the 0.0% retrace (75.63) from 11/4/10. Below all SMA's. No daily 3LB changes (reversal is 76.33). Rejected by SMA(21).

VIXBullish long day (yet closed lower from yesterday). Midpoint below EMA(10). Still below all SMA's. New low on daily 3LB (reversal is 18.00). Still in the "no fear" zone. Closed below the monthly 3LB reversal price.

GOLDBearish short day (long tail shows bulls fought back). Midpoint about EMA(10). No test of 0.0% retrace. Still above SMA(21). No daily 3LB changes (reversal is 1394.10). Holding above upper trend line. Must have the precious.

EURUSDHanging man day. Midpoint above EMA(10). Still above 1.3870 (the 61.8% retrace). Above all SMA's. New high on daily 3LB (reversal is 1.3988).

The alternative to nuclear had a weekly 3LB reversal last week. This week seems like a lot of indecision. It is holding its SMA(89) on the weekly chart. Also is very close to breaking back above its monthly 3LB mid. It also has held the one of the upper trend lines. A break of 4.660 will take out the next trend line (for this week anyway).

Say what you what but this proxy for liquidity is saying liquidity is increasing. This week it is now trading above its weekly 3LB reversal price. Doesn't look like the market implosion is ready to take place just yet. Give it time. Even stars fall from the sky in due time.

Per the Case-Shiller home prices are now trending down. So anyone saying home prices are at their lows are wrong. On top of that home prices have been heading lower for the last six months. Listen to those commercials if you want to - "Now is a great time to buy". Yeah right.

This is something new. Skew is a measure of tail risk. Similar to the VIX but uses otm options in its calculations. Only recently being offered by the CBOE (since 2/23/11). Waiting for them to add the historical data to the data feed. Usually ranges from 100 (normal) to 150 (high risk). The Skew is the histogram and the Vix is the black line.

Disclosure/Warning

This blog should not be interpreted as investment advice of any kind.The authors are NOT representing themselves CTAs or CFAs or Investment/Trading Advisor of any kind.The authors may or may not trade in the markets discussed.The authors may hold positions opposite of what may by inferred by this blog.The information contained in this blog is taken from sources the authors believes to be reliable, but it is not guaranteed by the authors as to the accuracy or completeness thereof and is presented here for information purposes only. Commodity trading involves risk and is not for everyone.

Fictional Character Quote of the Day:

I guess it comes down to a simple choice. Get busy living or get busy dying.

- Andy Dufresne

"The Shawshank Redemption"

About this Blog

This Blog's primary focus is on trading based upon technical analysis. It is run by "AmenRa" and "AndyT," quasi-anonymous traders who employ technical analysis to assess market conditions and trading opportunities. AmenRa utilizes 3LB techniques, Moving Averages and Fibonacci sequences. AndyT's analysis relies primarily on "Wave Theory" and Fibonacci sequences. The Comments Section is uncensored and open to the public. Please try and adhere to the "Blogger Policy."